My very brief thoughts on China in this 2-minute audio. Link to the piece below.
I expressed my thoughts in a piece sent out this weekend on the dynamics of the stimulus package and the CCP’s motivations behind it.
I expand on the situation that Xi finds himself in and the tangible and intangible reasons for why China and its markets and economy find themselves in such a precarious position.
Right now I note that the CSI300 is spiking higher and higher, with panicked buying from everyone with a bad case of the FOMOs…
Markets never stop being interesting! 😅
The Sentiment
"FOMO (fear of missing out) among investors is prevalent. We maintained a high gross risk exposure before the slew of policy announcements and have since enjoyed the ride. We will likely deploy the cash available if there were to be a technical correction in the near term. Property sector and fiscal policies are key to watch."
"The market is still surprised by China's policy support and momentum is still continuing."
Ng said he has been deluged with calls from clients asking for stock and strategy tips, and his latest Hang Seng target price, with more calls in the last few days than in half of the previous month.
"It's really a big turnaround, the policies are so intensive, we have never seen such clear instruction to stop housing prices declining and support the stock market."
"Many foreign investors are afraid of missing out, local retail investors are asking me what they should add to, institutional investors are rushing to the market to catch up, and the large inflows have pushed the Hang Seng Index up to 21,000.”
Next up on Philoinvestor
Downside at AI. Big Cloud profitability. AI ROI. Adoption of AI Applications…and more thoughts. A holistic multi-part piece on the AI thematic.
OPEC’s Pivot and Offshore Drilling etc. Saudi’s pivot to higher production and acceptance of lower oil prices. Effects on the energy complex and offshore drilling.
Share this post